Financial Performance - Adjusted profit after tax for the first half of 2022 was $8.4 billion, an increase from $8.1 billion in the first half of 2021[5] - Reported after-tax profit increased by $1.9 billion to $5.8 billion, including a deferred tax gain of $1.8 billion[11] - Adjusted pre-tax profit remained at $5 billion, with expected credit loss provisions recorded at $400 million, compared to a reversal of $300 million in the second quarter of 2021[11] - Adjusted revenue increased by 4% to $25.7 billion, driven by higher net interest income due to rising interest rates and asset growth[10] - The reported pre-tax profit for the first half of 2022 was $9.2 billion, a decrease of $1.7 billion compared to the first half of 2021, with a return on tangible equity of 9.9%[44] - The company reported a net profit of $9.215 billion for the first half of 2022, an increase from $8.422 billion in the same period of 2021, representing an increase of 9.4%[47] - The bank's revenue for the first half of 2022 was $25.236 billion, a decrease of $0.3 billion or 1% compared to $25.551 billion in the first half of 2021, primarily due to adverse currency translation effects[47] Capital and Equity - The common equity tier 1 capital ratio was reported at 13.6%, with a long-term target to reduce it below the range of 14% to 14.5%[7] - The common equity tier 1 capital ratio was 13.6%, down 2.2 percentage points since December 31, 2021, due to a decrease in common equity[10] - The common equity tier 1 ratio stood at 13.6%, down 2.2 percentage points from December 31, 2021, reflecting a decrease in common equity tier 1 capital of $16.8 billion[45] - The liquidity coverage ratio as of June 30, 2022, was 134%, with the group holding $657 billion in high-quality liquid assets[62] Cost Management - The company has achieved a cumulative reduction of $4.4 billion in costs as part of its cost-cutting plan[6] - The company aims to maintain adjusted operating expenses in line with 2021 levels, which were $15.5 billion in the first half of 2021[7] - Adjusted operating expenses are expected to remain at a similar level to 2021, despite inflationary pressures[12] - The group has cumulatively saved $4.4 billion from its cost-cutting plan, with a target cost of $4.6 billion[46] - The bank continues to manage costs rigorously, with a goal to stabilize adjusted costs at last year's levels despite rising inflation[18] Dividends and Payouts - The interim dividend per ordinary share for the first half of 2022 was $0.09[7] - The group announced an interim dividend of $0.09 per share, an increase of $0.02 from the first half of 2021[22] - The company plans to resume quarterly dividends in 2023, although initial dividends may be lower than the pre-2019 level of $0.1 per share[12] - The dividend payout ratio is expected to increase to approximately 50% for 2023 and 2024, with quarterly dividends set to resume in early 2023[24] Sustainable Financing and Investment - Sustainable financing and investment commitments since January 2020 reached $126.7 billion, with a target of $750 billion to $1 trillion by the end of 2030[7] - The company is focusing on financing projects that contribute to the transition to net-zero carbon emissions by 2030[6] - HSBC aims to provide and facilitate sustainable financing and investment between $750 billion and $1 trillion by the end of 2030[35] - The group has committed to releasing its first comprehensive climate transition plan in 2023, following science-based targets[24] Customer and Market Growth - Customer loans increased by $34 billion, reflecting growth in commercial banking and global markets[10] - The bank's international client base grew by 5% year-on-year, with international clients generating approximately twice the revenue of local clients[20] - The wealth management and personal banking business accounted for 44% of the group's tangible equity in the first half of 2022, up from 42% in the first half of 2021[28] - New net asset inflows increased by $39 billion in H1 2022, with Asia contributing $22 billion[30] Technology and Digital Services - The adoption rate of cloud technology increased from approximately 25% at the end of H1 2021 to 31% at the end of H1 2022[34] - The company is testing central bank digital currencies in collaboration with multiple central banks[32] - The company is set to launch a digital wallet, Global Wallet, in more markets later in 2022[31] - The number of digital service employees in the digital business services department decreased from approximately 31,400 to 28,400[33] Risk Management and Economic Outlook - The company continues to actively manage risks to support strategic objectives and ensure business growth amid macroeconomic challenges[96] - The group continues to monitor credit loss models closely, adjusting for potential impacts from geopolitical and macroeconomic risks[103] - The ongoing geopolitical situation, including sanctions and trade restrictions, continues to create uncertainty for the group's clients and operations[103] - The company is enhancing monitoring measures to address technology and cybersecurity risks amid geopolitical tensions[111] Employee Development and Diversity - The company has committed to doubling the number of senior leaders from Black backgrounds by 2025[39] - The total hours of learning opportunities for employees increased from 22,400 hours in H1 2021 to approximately 175,000 hours[35] - The company provided approximately 175,000 hours of training for employees on key future skills, including sustainability and digital[39] - The proportion of female senior management positions increased to 32.5% by mid-2022, compared to 31.1% at the end of H1 2021[35] Strategic Acquisitions and Partnerships - HSBC completed the acquisition of AXA Singapore and increased its stake in HSBC Qianhai Securities to 90%[18] - The company announced a strategic acquisition of a smaller tech firm, expected to enhance its product offerings and market reach[122] - The company is exploring acquisition opportunities to enhance its product portfolio and market presence[183] Future Guidance and Projections - The company provided a positive outlook, projecting a revenue growth of 20% for the next quarter, aiming for €1.44 billion[122] - The company provided guidance for the next quarter, expecting revenue to be in the range of $950 million to $1 billion, reflecting a potential growth of 3.8% to 9.3%[142] - Future guidance indicates a strong focus on sustainability initiatives, with a commitment to reduce carbon emissions by 25% by 2025[160]

HSBC Holdings plc (NYSE:HSBC) Q2 2022 Earnings Conference Call August 1, 2022 2:30 AM ET Company Participants Mark Tucker - Group Chairman Noel Quinn - Group Chief Executive Ewen Stevenson - Chief Financial Officer Richard O'Connor - Global Head of Investor Relations Conference Call Participants Raul Sinha - JPMorgan Manus Costello - Autonomous Research Omar Keenan - Credit Suisse Aman Rakkar - Barclays Gurpreet Singh Sahi - Goldman Sachs Andrew Coombs - Citigroup Martin Leitgeb - Goldman Sachs Guy Stebbing ...

Financial Performance - HSBC's reported revenue for 2Q22 was $12.8 billion, a 2% increase, while adjusted revenue reached $13.1 billion, up 12% compared to 2Q21[3] - The company's reported PBT for 2Q22 was $5.0 billion, a 1% decrease, but adjusted PBT rose to $6.0 billion, a 13% increase compared to 2Q21[3] - Net Interest Income (NII) for 2Q22 was $7.5 billion, up 20% compared to 2Q21, driven by interest rate rises and lending growth[23, 26] - The company is targeting a RoTE of 12%+ from FY23 onwards and expects a payout ratio of approximately 50% for FY23 and FY24, reinstating quarterly dividends from 2023[3, 49, 55] Business Segment Performance - Commercial Banking (CMB) revenue increased by 19% to $3.7 billion, driven by interest rate rises, balance sheet growth, and higher fees[27, 77] - Global Banking and Markets (GBM) revenue increased by 15% to $3.8 billion, primarily driven by Markets and Securities Services (MSS), which was up 27%[27, 78] - Wealth and Personal Banking (WPB) revenue increased by 5% to $5.7 billion, and up 19% excluding adverse insurance market impacts of $0.7 billion[27, 76] Capital and Costs - The Group CET1 ratio was 13.6%, down 0.5 percentage points vs 1Q22[4, 24, 48] - Adjusted costs remained stable at $7.5 billion compared to 2Q21, with cost savings offsetting increased technology spending and investment[23, 26, 42] - The company is on track to achieve the high end of its $5 billion-$5.5 billion cost saves target and spend the remaining CTA of $2.4 billion in 2H22[42] Digital Transformation - Technology spend increased, with total tech spend reaching approximately $3.1 billion[12] - HSBCnet wholesale mobile app payments volume increased by 60.8%[15] - Mobile active retail customers increased by 5.5 percentage points[16] Guidance - The company upgraded its revenue guidance, expecting at least $31 billion in NII for FY22 and at least $37 billion in FY23[20, 34] - Adjusted cost growth is expected to be stable in 2022, with approximately 2% annual growth in FY23[20, 42]

Financial Data and Key Metrics Changes - The company reported a 2% increase in revenue compared to the second quarter of the previous year, with a 12% increase on an adjusted basis [2] - Adjusted pre-tax profit rose by 13% year-over-year, supported by strong cost control [2][6] - The effective tax rate is expected to be around 10% for 2022, benefiting from a $1.8 billion deferred tax asset credit [6] Business Line Data and Key Metrics Changes - The company has seen strong performance in its wealth and personal banking segments, particularly in Asia, with significant growth in lending balances and revenue [4][5] - The commercial banking segment reported a 20% increase in revenue, driven by strong customer activity and market conditions [4] - The financial and private banking sectors experienced a 9% growth in new assets in the first half of the year [4] Market Data and Key Metrics Changes - Revenue growth was reported across various regions: 19% in the UK, 5% in Hong Kong, and 18% in Asia [4] - The global banking and markets business saw a 14% increase in revenue, reflecting strong client activity and market conditions [4] - The company’s international client business is significant, with 45% of wholesale client business booked cross-border [8] Company Strategy and Development Direction - The company is focused on transforming its operations to enhance profitability and efficiency, particularly in high-growth regions like Asia [2][4] - There is a commitment to maintaining a strong international presence and leveraging global trade connections to support client needs [8] - The board is exploring alternative structural options but believes the current strategy is the safest and most effective way to achieve high profits [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to navigate the current economic environment and capitalize on rising interest rates [2][6] - The outlook for 2023 and 2024 includes expectations for at least $3.7 billion in profit, with a focus on maintaining a 12% return on equity [5][10] - The management team is closely monitoring economic indicators and adjusting strategies accordingly to mitigate risks [6][16] Other Important Information - The company is committed to investing in technology and digital services to enhance customer experience and operational efficiency [5][10] - There is a focus on sustainable finance and investment, with a strong pipeline of green and sustainable funding opportunities [5] Q&A Session Summary Question: What are the growth prospects in Asia? - Management highlighted strong growth opportunities in Asia, particularly in commercial banking and trade, with significant investments being made in the region [13] Question: How does the company plan to manage capital actions? - The company is focused on maintaining a strong capital position while pursuing strategic growth opportunities, with plans to adjust capital management actions based on market conditions [14][15] Question: What is the outlook for interest rates and their impact on profitability? - Management indicated that rising interest rates are expected to positively impact profitability, with a focus on managing interest rate sensitivity effectively [15][16]

Financial Performance - HSBC's reported revenue for 1Q22 was $12.5 billion, a decrease of $0.5 billion (4%) compared to 1Q21[4] - Reported profit before tax (PBT) for 1Q22 was $4.2 billion, down $1.6 billion (28%) compared to 1Q21[4, 13] - Adjusted PBT for 1Q22 was $4.7 billion, a decrease of $1.6 billion (25%) compared to 1Q21[13, 14] - Net interest income (NII) increased by $0.5 billion (7%) to $7.0 billion in 1Q22 compared to 1Q21, driven by rising global interest rates[14, 23] - Non-NII decreased by $1.1 billion (16%) to $5.6 billion in 1Q22 compared to 1Q21, negatively impacted by adverse insurance market movements[14, 16] - The ECL charge was $0.6 billion, compared to a $0.4 billion release in 1Q21[4, 16] Capital and Lending - The CET1 ratio decreased by 1.7 percentage points to 14.1% compared to 4Q21, with impacts from regulatory changes and adverse fair value movements[5, 15, 31] - Customer lending increased by $21 billion (2%) compared to 4Q21, with strong growth in CMB and GBM, supported by mortgage growth in WPB[4, 16] - Trade balances increased by $15 billion (22%) compared to 1Q21, reaching $86 billion[7] Regional Performance - Adjusted PBT in Europe decreased from $1.5 billion in 1Q21 to $0.7 billion in 1Q22[6] - Adjusted PBT in Asia decreased from $3.8 billion in 1Q21 to $2.9 billion in 1Q22, with Hong Kong decreasing from $1.9 billion to $1.1 billion[6] - Mainland China adjusted performance 1Q22 revenue up 9% vs 1Q21[11] Business Highlights - Strong Insurance performance excluding adverse market impacts; VNB up 25% vs 1Q21[7] - Real estate footprint down 25% since FY19[9]

HSBC Holdings Plc (NYSE:HSBC) Q1 2022 Earnings Conference Call April 26, 2022 2:30 AM ET Company Participants Ewen Stevenson - Chief Financial Officer Conference Call Participants Joseph Dickerson - Jeffries Aman Rakkar - Barclays Raul Sinha - JPMorgan Jason Napier - UBS Yafei Tian - Citigroup Omar Keenan - Credit Suisse Tom Rayner - Numis Securities Edward Firth - KBW Guy Stebbings - BNP Paribas Manus Costello - Autonomous Martin Leitgeb - Goldman Sachs Operator Good morning, ladies and gentlemen, and welc ...

Financial Performance - The adjusted profit before tax decreased by $1.6 billion to $4.7 billion compared to Q1 2021, reflecting expected credit losses and a decline in revenue [3]. - Total revenue decreased by 4% to $12.5 billion, primarily due to reduced income from wealth management and personal banking [3]. - The reported revenue for Q1 2022 was $12,464 million, an increase from $11,989 million in Q1 2021, representing a growth of 4% [5]. - Adjusted pre-tax profit for Q1 2022 reached $4,706 million, up from $3,945 million in Q1 2021, marking a 19% increase [5]. - The reported baseline profit after tax was $3.4 billion, a decrease of $1.1 billion or 25% compared to Q1 2021 [20]. - Profit attributable to ordinary shareholders was $2,803 million in Q1 2022, compared to $1,788 million in Q1 2021, marking a 56.7% increase [16]. - The effective tax rate for Q1 2022 was 17.4%, down from 21% in Q1 2021, due to changes in UK banking sector tax legislation [24]. Credit Losses and Provisions - The expected credit loss provisions for Q1 2022 were $600 million, compared to a reversal of $400 million in Q1 2021, reflecting the economic impact of the Russia-Ukraine war [3]. - The expected credit losses increased to $(642) million in Q1 2022 from $435 million in Q1 2021, indicating a significant rise in provisions [19]. - The expected credit loss provision included an additional $250 million management judgment adjustment to reflect increased uncertainty from various risks, including prolonged economic growth slowdown and geopolitical risks [66]. - The expected credit loss provisions included $300 million from wholesale loans, with $300 million also from personal loans, reflecting the impact of the economic environment [66]. Capital and Ratios - The common equity tier 1 capital ratio decreased to 14.1%, down 1.7 percentage points from Q4 2021, due to a reduction in common equity tier 1 capital and an increase in risk-weighted assets [3]. - The common equity tier 1 capital decreased to $121,447 million from $132,565 million, resulting in a common equity tier 1 ratio of 14.1%, down from 15.8% [126]. - The leverage ratio improved to 5.7% as of March 31, 2022, compared to 5.2% on December 31, 2021 [126]. - The total capital ratio decreased to 18.3% from 20.0% in the previous quarter [126]. Operating Expenses - The total operating expenses decreased to $(8,307) million in Q1 2022 from $(8,933) million in Q1 2021, reflecting a reduction of 7% [19]. - Adjusted operating expenses target for 2022 remains consistent with 2021 levels [10]. - The adjusted operating expenses were $7.9 billion, a decrease of $100 million or 2%, benefiting from cost-saving measures of $600 million [28]. Customer Loans and Assets - Customer loans increased by $9 billion on a reported basis, with a significant rise in mortgage balances contributing $5.8 billion [3]. - Total assets as of March 31, 2022, were $3,021,512 million, up from $2,957,939 million a year earlier [6]. - Customer loans net amount reached $1,055,307 million, slightly up from $1,045,814 million in Q1 2021 [6]. - The total customer loans measured at amortized cost amounted to $1,057,231 million, with a slight increase in expected credit loss coverage ratios across different risk levels [69]. Strategic Initiatives - HSBC aims to accelerate digital transformation and enhance customer service through increased technology investment [9]. - The company is committed to achieving net zero carbon emissions and assisting clients in transitioning to a net zero future [9]. - The company completed a $2 billion share buyback program on April 20, 2022, and plans to initiate an additional buyback of up to $1 billion after the annual general meeting [3]. - The company plans to continue investing in technology, including $200 million in digital banking services, despite the overall reduction in operating expenses [23]. Market and Economic Conditions - The company expects loan growth in the mid-single digits for 2022, driven by improving market conditions [4]. - Geopolitical tensions and macroeconomic risks have disrupted global supply chains, potentially impacting the group significantly [62]. - The ongoing conflict in Ukraine has led to substantial sanctions against Russia, affecting the group's operations and client base in the region [62]. - The anticipated tightening of monetary policies by central banks in response to rising inflation may lead to economic slowdowns [62]. Environmental and Governance Commitments - The company is committed to achieving net-zero emissions in its own operations and supply chain by the end of 2030, and for its customer portfolio by 2050 [64]. - The company plans to release a climate transition plan in 2023, committing to a phased reduction of fossil fuel financing [64]. - HSBC's commitment to effective risk management is crucial for navigating operational, legal, and regulatory challenges [114].

Financial Performance - The adjusted pre-tax profit increased by $10.1 billion to $18.9 billion, driven by favorable changes in expected credit losses and increased profits from associates[14]. - HSBC reported a pre-tax profit of $18.9 billion for 2021, an increase of $10.1 billion compared to 2020, while adjusted pre-tax profit rose to $21.9 billion, up 79%[36]. - The group recorded a reported pre-tax profit of $18.9 billion, an increase of $10.1 billion compared to the previous year, with adjusted profit rising to $21.9 billion, up 79%[44]. - The group reported a 79% increase in adjusted pre-tax profit for 2021, amounting to $3,495 million compared to $2,659 million in 2020[127][128]. - The reported profit before tax for 2021 was $18.9 billion, an increase of $10.1 billion from 2020, primarily due to the reversal of expected credit losses[135]. - The adjusted return on tangible equity (ROTE) was 15.2% in 2021, compared to 9.1% in 2020[160]. - The average tangible equity return improved by 5.2 percentage points to 8.3%[133]. - The adjusted return on tangible equity (ROTE) for 2021 was 8.6%, up from 6.7% in 2020[180]. Capital and Equity - The common equity tier 1 capital ratio stood at 15.8%, with a medium-term target of maintaining it between 14% and 14.5%[11]. - The common equity tier 1 ratio for 2021 was 15.8%, exceeding the target of over 14%[56]. - The common equity tier 1 ratio was 15.8% as of December 31, 2021, indicating robust capital strength[133]. - The common equity tier 1 capital ratio was 15.8%, a decrease of 0.1 percentage points[14]. - The total capital ratio was 21.2%, a decrease from 21.5% in 2020[19]. Risk Management and Credit Losses - The group recorded a credit loss reversal due to improved global economic conditions, reflecting a strong performance in the Asian business[8]. - The expected credit loss provisions are projected to return to average levels of 30 basis points in 2022, with ongoing uncertainties due to inflation and developments in the Chinese commercial real estate sector[15]. - The expected credit loss reversal amounted to $900 million, reflecting an improved economic outlook, particularly in the UK, despite increased provisions in China[139]. - Adjusted expected credit losses recorded a net reversal of $0.9 billion, compared to a provision of $9.3 billion in 2020, reflecting improved economic outlook[148]. Revenue and Expenses - Adjusted revenue decreased by 3% to $50.1 billion, reflecting a decline in global interest rates and reduced capital markets and securities services income[14]. - The adjusted operating expenses were $32.1 billion, with a target to align with 2021 levels in 2022[11]. - The adjusted operating expenses for 2022 are expected to remain flat compared to 2021, with a target of $3.4 billion in spending to achieve over $2 billion in cost savings[15]. - The group successfully reduced adjusted operating expenses by 1%, offsetting technology investments and performance-related compensation growth[44]. - The company achieved cumulative cost savings of $3.3 billion since the start of its cost reduction plan in 2020, with a target of $5 to $5.5 billion in savings by 2022[134]. Dividends and Shareholder Returns - The dividend per share was $0.25, with a target to maintain a sustainable cash dividend payout ratio between 40% and 55% starting in 2022[11]. - The board declared a second interim dividend of $0.18 per ordinary share, bringing the total dividend for 2021 to $0.25 per ordinary share[36]. - The total dividend for the year was $0.25 per ordinary share, with plans to continue dividend payments in 2022[44]. - The board decided to resume dividend payments after previously suspending them in 2020, with a dividend declared for the first half of 2021[124]. Wealth Management and Growth Strategy - The Asian wealth management business attracted $36 billion in new net investment assets in 2021, with acquisitions planned in Singapore and India[15]. - The company aims to become a leader in wealth management, focusing on opportunities in Asia and the Middle East[29]. - Wealth management revenue increased by $1.1 billion, driven by favorable market impacts on life insurance products and growth in investment distribution, asset management, and new insurance business[138]. - The wealth management and personal banking business had a wealth balance of $1.7 trillion as of December 31, 2021, representing a 5% increase from December 31, 2020[163]. Sustainability and ESG Commitment - HSBC aims to assist in achieving net-zero carbon emissions by 2030, with a policy to phase out financing for thermal coal[10]. - The company aims to achieve net-zero carbon emissions in its operations and supply chain by 2030, aligning with the Paris Agreement[79]. - The bank has reduced its absolute greenhouse gas emissions by 50.3% from 2019 levels, with a target to achieve net zero emissions in its operations and supply chain by 2030[86]. - The company aims to provide and facilitate sustainable financing and investment of $750 billion to $1 trillion by 2030[89]. - The company plans to disclose its climate transition plan in 2023 and report on progress annually thereafter[90]. Customer Engagement and Satisfaction - Customer satisfaction ratings improved, with six out of ten markets in wealth management and personal banking achieving top three ratings[12]. - HSBC assisted nearly 269,000 individual customers in purchasing their first homes in 2021[41]. - The bank lent $47 billion to business clients to support operations, expansion, and digital transformation[41]. - The mobile banking application has been improved and is now available to users in 24 markets, with over 900 million payments processed through HSBCnet[46]. Digital Transformation and Technology Investment - The company is committed to digital transformation and aims to lead in the transition to net-zero carbon emissions[36]. - In 2021, the group invested $6 billion in technology, with approximately 97% of transactions fully automated[46]. - Technology spending accounted for 19% of adjusted operating expenses in 2021, approximately $6 billion, up from about $5.7 billion in 2020, with a target to increase this ratio to over 21% by 2025[68]. - The adoption rate of cloud technology increased from 20% in 2020 to 27% in 2021[70]. Employee Engagement and Corporate Culture - Employee engagement index stands at 72%, 4 percentage points higher than the financial services industry average[49]. - The company aims to increase the representation of women in leadership roles to 35% by 2025, having surpassed the previous target of 30%[46]. - The company has achieved a 31.7% representation of women in senior leadership roles, aiming for 35% by the end of 2025[86]. - Average training hours per full-time equivalent employee increased from 23 hours in 2020 to 26.7 hours in 2021[71].

HSBC Holdings plc FY21 and 4Q21 Results Presentation to Investors and Analysts Our ambition To be the preferred international financial partner for our clients Our values We value difference We succeed together We take responsibility We get it done Focus on strengths Digitise at scale Energise for growth Transition to net zero Strategy 4Q21 results Appendix Our purpose, values and ambition support the execution of our strategy Our purpose Opening up a world of opportunity Our strategy Strategy 4Q21 results ...

As filed with the Securities and Exchange Commission on February 23, 2022. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 Or þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or SHELL COMPANY REPORT PURSUANT ...